The FTC is asking for public comment on the proposed rule. | Photo: Shutterstock
The Federal Trade Commission is considering a crackdown on third-party delivery charges.
The consumer watchdog on Thursday proposed a new rule that would address how apps like DoorDash, Uber Eats and Grubhub handle pricing and delivery fees for consumers. The agency is asking for public comment on the proposal through May 18.
The proposal highlights multiple delivery pricing practices that the FTC says are “potentially deceptive and misleading.” Per the agency, those issues include:
-
Markups: Restaurants often mark up their prices on delivery apps to help cover their own delivery commissions. This can lead to prices that are up to 20% higher than they are in the restaurant. This price difference is not always apparent to consumers.
-
Hidden fees: Delivery apps charge numerous fees that are often not disclosed until checkout, which makes it harder for customers to understand the full cost of their meal. This causes them to either abandon the order or pay more than they were expecting.
-
“Free delivery” claims: Delivery apps often advertise low- or no-fee delivery options to appeal to price-conscious consumers, while still tacking on service fees or other charges at checkout. It’s not always clear what services these additional fees cover.
-
Tipping transparency: Delivery apps ask customers to tip their delivery person, but when combined with delivery and service fees, customers are not always clear what their tip covers, who it is for and how much is appropriate.
The FTC said these tactics not only mislead consumers, but could also be anti-competitive, because delivery prices may appear lower at a glance than other services with more transparent pricing.
It’s not the first time the agency has taken steps to crack down on delivery fees. In December 2024, the FTC reached a $25 million settlement with Grubhub after alleging that the company advertised free delivery while still charging users undisclosed fees. It has taken similar actions against Instacart, Amazon and Walmart. However, it said that without an overarching rule, it has limited authority to enforce these issues.
Notably, restaurant delivery apps were excluded from a 2025 FTC rule that requires businesses to list the total price for their goods or services up front, including fees. During the rule-making process, the FTC received comments both for and against including delivery apps in the rule and ultimately decided to carve them out. It now believes the problems are widespread enough to warrant their own rule.
It comes as demand for food delivery continues to grow, despite the cost. In the fourth quarter, both DoorDash and Uber Eats recorded quarter-over-quarter bookings growth of 19% and 9%, respectively, their biggest such jump since early 2021.
If the rule comes to fruition, it would be the latest regulatory hurdle for the delivery business model. The FTC pointed out that several states have already enacted or are considering laws that require delivery apps to post the total price of an order up front, fees included. And delivery apps are also facing aggressive minimum-wage requirements in New York City and Seattle.
The companies had not responded to a request for comment as of publication time.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.
